WAYNE COUNTY MORTGAGE FORECLOSURE PREVENTION PROGRAM

Transcription

1 WAYNE COUNTY MORTGAGE FORECLOSURE PREVENTION PROGRAM Fight Mortgage Foreclosure

2 SURVING FORECLOSURE

3 Some Definitions Delinquency: When you are 15 days or more late Foreclosure: when the lender has filed formal papers to take the house back at a sheriff sale Servicer: The company to whom you make your monthly payments

4 FORECLOSURE TIMELINE 1 ST AND 2 ND MONTH CALLS AND LETTERS FROM LENDER 3 RD MONTH - DEMAND LETTER OR NOTICE TO ACCELERATE Foreclosure activities usually commence after you re 90 days late 4 TH MONTH NOTICE OF INTENT TO FORECLOSE, FORECLOSURE ATTORNEY ENGAGED,SHERIFF SALE SCHEDULED This will add $1,100 to $2,000 to the cost of keeping your home.

5 FORECLOSURE TIMELINE 6 TH MONTH SHERIFF SALE REDEMPTION PERIOD THE 6 MONTH PERIOD FOLLOWING THE SHERIFF SALE END OF 6 MONTH REDEMPTION PERIOD - EVICTION

6 Preventing Foreclosure Step 1: Admit there is a Financial Emergency The first step toward overcoming a financial emergency is admitting that there is one. The problem will not go away if you ignore it. It will only get worse. Nationally, only 50% of people who are delinquent on their mortgage contact their servicer. This reveals that many are in denial or think there is no hope.

7 Preventing Foreclosure Step 2: Establish an Emergency Plan Develop a plan to increase your income that makes sense for you. Look for a new job. Consider taking several part-time jobs. Sell things you no longer need. Bring in a renter to help you pay for the cost of housing.

8 Preventing Foreclosure If you are at risk of Foreclosure, an Emergency Budget must be created Can you afford to keep the house in the long run? Be realistic: Have you been able to stabilize financially from that event that caused you to fall behind?

9 Preventing Foreclosure Emergency Budget: It differs from the regular budget you created when you purchased your home. This one is critical in the sense that it needs to closely examine the REAL expenses you are incurring today. More important, you will be challenged to identify expenses you can trim or eliminate for a while.

10 Preventing Foreclosure You need to greatly reduce or eliminate your spending on luxury items or unnecessary items until you have totally recovered from your financial emergency. You need to stop dining out. You need to shut off your cable. You need to reduce spending on clothing and personal effects. You need to stop spending on entertainment.

11 Preventing Foreclosure Step 3: Make Contact Contact your mortgage servicer, ask for the loss mitigation department as soon as you have developed your emergency budget. Please realize that they are not the enemy. They have a job to do. You need to learn to work with them. They will assist you put together a workout plan.

12 Mortgage Foreclosure Prevention Program (877) or (313) Use the emergency budget you just developed to identify how much you can afford to pay on your mortgage each month. Explain to the representative your situation and negotiate a plan to repay them. But don t make promises you can t keep.

13 Preventing Foreclosure THE WORKOUT PLAN Emergency budget Hardship letter Proof of earnings Tax documents for 2 years Bank statements for 3 months Proof of your hardship

14 Preventing Foreclosure Home Retention Solutions: Reinstatement Repayment Plan Forbearance Agreement Loan Modification Partial/Advance Claim Reverse Mortgage Refinance Chapter 7 or 13 Bankruptcy

15 Preventing Foreclosure Non-Retention Solutions: Traditional Sale Short Sale Deed-in-Lieu of Foreclosure

16 Preventing Foreclosure TIPS FOR WORKING WITH THE MORTGAGE SERVICER Ask to speak to someone in the loss mitigation department. Unless the mortgage servicer, does not have a loss mitigation department, you should not try to make repayment arrangements with the collection department.

17 Preventing Foreclosure Step 4: Get Professional Help An objective third party opinion will help you when you are dealing with a financial emergency. Contact or for the Wayne County counseling office. HUD Housing Counselor agency nearest you.

18 Preventing Foreclosure Don t Get Scammed!! A qualified housing counselor can help you complete an emergency budget and establish a plan to work with creditors. This service should be at no charge.

19 Preventing Foreclosure Be careful of foreclosure rescue scams that take advantage of people while they are desperate and confused. Avoid any service that charges an up-front fee. If you are facing a foreclosure, all your money should be saved to make payments directly to your mortgage servicer.

20 IF YOU NEED ASSISTANCE Mortgage Foreclosure Prevention Program (MFPP) or HUD housing counseling agency Mortgage Foreclosure Prevention Program

21 WAYNE COUNTY MORTGAGE FORECLOSURE PREVENTION PROGRAM (MFPP)

22 WAYNE COUNTY MORTGAGE FORECLOSURE PREVENTION PROGRAM (MFPP) RESOURCES TO HELP YOU: United Way 211 or (Referral hotline for a variety of social services and assistance programs) Department of Human Services (Food Stamps, Medicaid, State Emergency Relief) Legal Aid and Defender Wayne County Treasurer 313)

23 WAYNE COUNTY MORTGAGE FORECLOSURE PREVENTION PROGRAM (MFPP) Federal & State Programs: Making Home Affordable (President Obama Plan) The Home Affordable Refinance program The Home Affordable Modification program Michigan State Housing Development Authority Save the Dream

24 WAYNE COUNTY MORTGAGE FORECLOSURE PREVENTION PROGRAM (MFPP) Next Steps If You Are Interested in Receiving Professional Foreclosure Prevention Counseling from MFPP partner agencies: 1. Register online at 2. Begin to gather needed documents such as your most current mortgage statement, income documentation, 3 months bank statements, federal tax returns, closing documents 3. Wait to hear from one of our professionally trained foreclosure counselors who will be able to assist you.

25 WAYNE COUNTY MORTGAGE FORECLOSURE PREVENTION PROGRAM (MFPP) Contact Us: or

26 MFPP